FHA Commissioner Brian Montgomery said, “Streamlining the HECM claim payment process makes us more responsive to participating lenders and helps continue our effort to put the program on a more financially viable path.”

FHA’s new HECM claims payment requirements will ensure lenders participating in the program are not unduly burdened when seeking claims payments when the HECM reaches 98 percent of its maximum claim amount. By streamlining the requirements and relaxing the documentation burden during the claims process, FHA is seeking to reduce the time required to make timely claims payments to servicers.

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